The governments of Myanmar and India have reached an agreement to resume border trade via land routes, according to The Economic Times.
During a meeting in New Delhi, India, recently, Deputy Minister for Commerce of the Union of Myanmar U Min Min and Union Minister of State for Commerce and Industry Jitin Prasada of India discussed the importance of resuming border trade between the two countries and agreed to continue implementing it.
Officials of the two countries also discussed enhancing cooperation in the sectors of pharmaceuticals, pulses and petroleum products as well as potential for using direct Rupee-Kyat payments. The Myanmar side has authorized the banks of UAB and CB Bank PCL as designated banks for Rupee-Kyat payments while the Indian side has authorized the state-owned Punjab National Bank. The two countries are conducting trade through the Reed Border Trade Post and Tamu Border Trade Post on the Myanmar-India border.
However, trade through Myanmar-India border posts has been closed by the Indian government and due to the regional situation, trade between the two countries is currently suspended and is only conducted through the sea route, a trader at the Kalay-Tamu border, said.
India is Myanmar’s fifth largest trading partner with bilateral trade reaching US$1.74 billion in the 2023-2024 fiscal year and US$1.76 billion in the 2022-2023 fiscal year. Betel nuts, cigarettes and other goods are exported to India through Myanmar-India border posts, and industrial equipment and fertilizers are imported according to the Ministry of Commerce of the Union of Myanmar.
